Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study

Xue, Bing; Geng, Yong; Müller, Katrin; Lu, Chengpeng; Ren, Wanxia

doi:10.3390/su6021037

Cited by 35 publications

(17 citation statements)

References 25 publications

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“…This result is in agreement with Shafiei and Salim [45] for the case of OECD countries but contrasts with Salim and Rafiq [46] for India, which indicates unidirectional causality from CO 2 emissions to income. It also differs from Xue et al [47] for nine European countries and Peng et al [48] for China. In addition, there is a unidirectional relationship from GDP per capita to energy consumption and from CO 2 emissions to trade openness.…”

Section: Ardl Cointegration Methodscontrasting

confidence: 70%

Does Non-Fossil Energy Usage Lower CO2 Emissions? Empirical Evidence from China

Yang

2016

Sustainability

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This paper uses an autoregressive distributed lag model (ARDL) to examine the dynamic impact of non-fossil energy consumption on carbon dioxide (CO 2 ) emissions in China for a given level of economic growth, trade openness, and energy usage between 1965 and 2014. The results suggest that the variables are in a long-run equilibrium. ARDL estimation indicates that consumption of non-fossil energy plays a crucial role in curbing CO 2 emissions in the long run but not in the short term. The results also suggest that, in both the long and short term, energy consumption and trade openness have a negative impact on the reduction of CO 2 emissions, while gross domestic product (GDP) per capita increases CO 2 emissions only in the short term. Finally, the Granger causality test indicates a bidirectional causality between CO 2 emissions and energy consumption. In addition, this study suggests that non-fossil energy is an effective solution to mitigate CO 2 emissions, providing useful information for policy-makers wishing to reduce atmospheric CO 2 .

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Section: Ardl Cointegration Methodscontrasting

confidence: 70%

Does Non-Fossil Energy Usage Lower CO2 Emissions? Empirical Evidence from China

Yang

2016

Sustainability

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“…As with the models used in previous studies, cointegration and Granger causality tests have been widely used in exploring the relationship between urbanization, economic growth and energy consumption [31][32][33][34][35]. Little attention has, however, been paid to the utilization of VECM and impulse response analysis.…”

Section: Introductionmentioning

confidence: 99%

The Relationship between Urbanization, Economic Growth and Energy Consumption in China: An Econometric Perspective Analysis

2015

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Abstract:As the largest developing country in the world, with rapid economic growth, China has witnessed fast-paced urbanization development over the past three decades. In fact, urbanization has been shown to promote economic growth and improve the livelihood of people, but it can also increase energy consumption and further generate energy crisis. Therefore, a better understanding of the relationship between urbanization, economic growth and energy consumption is important for China's future sustainable development. This paper empirically investigates the long-term equilibrium relationships, temporal dynamic relationships and causal relationships between urbanization, economic growth and energy consumption in China. Econometric models are utilized taking the period 1980-2012 into consideration. Cointegration tests indicate that the variables are found to be of I(1) and cointegrated. Further, vector error-correction model (VECM) indicates that when the short-term fluctuations deviate from the long-term equilibrium, the current changes of energy consumption could eliminate 9.74% non-equilibrium error of the last period, putting back the situation to the equilibrium state through a reverse adjustment. Impulse response analysis intuitively portrays the destabilized changes of the variables in response to some external shocks. However, the impact of energy consumption shock on urbanization and the OPEN ACCESSSustainability 2015, 7 5610 impact of urbanization on economic growth seem to be rather marginal. Moreover, Granger causality results reveal that there is a bi-directional Granger causal relationship between energy consumption and economic growth, and unidirectional causality running from urbanization to energy consumption and economic growth to urbanization. The findings have important implications for Chinese policymakers that on the path towards a sustainable society, the effects of urbanization and economic growth on energy consumption must be taken into consideration.

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“…Given the impact of the energy system on climate change, essentially emissions from fossil fuel combustion, many countries have made efforts to decouple energy use from economic growth. Decoupling consists of increasing the energy productivity of economic activities such that more output can be produced per unit of energy used [59][60][61]. Energy efficiency measures are expected to be the main factor in reducing energy intensity and an indicator of successful decoupling.…”

Section: Energy Intensity (Ei) = Energy/gdpmentioning

confidence: 99%

The Trends of the Energy Intensity and CO2 Emissions Related to Final Energy Consumption in Ecuador: Scenarios of National and Worldwide Strategies

Arroyo

Miguel

2019

Sustainability

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Climate change and global warming are related to the demand for energy, energy efficiency, and CO 2 emissions. In this research, in order to project the trends in final energy demand, energy intensity, and CO 2 emission production in Ecuador during a period between 2000 and 2030, a model has been developed based on the dynamics of the systems supported by Vensim simulation models. The energy matrix of Ecuador has changed in recent years, giving more importance to hydropower. It is conclusive that, if industrialized country policies or trends on the use of renewable energy and energy efficiency were applied, the production of CO 2 emissions by 2030 in Ecuador would reach 42,191.4 KTCO 2 , a value well below the 75,182.6 KTCO 2 that would be seen if the current conditions are maintained. In the same way, by 2030, energy intensity would be reduced to 54% compared to the beginning of the simulation period.Between 1750 and 2011, cumulative anthropogenic CO 2 emissions to the atmosphere were 2040 ± 310 GTCO 2 . About 40% of these emissions have remained in the atmosphere (880 ± 35 GTCO 2 ) [5]; the rest have been removed from the atmosphere and stored on land (in plants and soils) and in the ocean. People's life expectancy is threatened by climate change through the limitation of access to water, food, medical care, and land. Therefore, it is important to reduce the consumption of fossil fuels and increase the use of renewable energy in order to minimize CO 2 emissions [13].Sustainability of power systems with high renewable energy penetration rates is a topic of major interest, especially when considering the intermittency of renewable energy source (RES) production and the actual growing trend of energy consumption [6]. The transition from fossil fuels to RESs is an indispensable necessity if sustainable socio-economic systems are to be realized. RES variability now represents a major challenge when it comes to upgrading power systems. From a social and economic perspective, the RES share in meeting electricity demand has shown a steady growth [7]. The increasing renewable energy share in electricity generation as a result of several factors such as environmental constraints, technical and economic aspects, or social implications has led to a corresponding reduction in total CO 2 emissions [8].The energy return on investment (EROI) metric includes factors affecting the whole energy system that are not accounted for by the monetary costs of individual power plants (such as additional costs for the system related to distribution, intermittency of RES, etc.) [14][15][16][17][18][19][20]. The transition to new energy resources and to new energy conversion and storage devices will affect the fraction of energy reinvestment, which could have significant economic impacts [21][22][23][24][25][26]. Those RESs with a higher potential (i.e., wind, and solar) have been generally found to have a lower EROI standard (EROIst) than fossil fuels, especially when incorporating the energy costs of dealing with intermittency [9].Energy ...

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Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study

Cited by 35 publications

References 25 publications

Does Non-Fossil Energy Usage Lower CO2 Emissions? Empirical Evidence from China

Does Non-Fossil Energy Usage Lower CO2 Emissions? Empirical Evidence from China

The Relationship between Urbanization, Economic Growth and Energy Consumption in China: An Econometric Perspective Analysis

The Trends of the Energy Intensity and CO2 Emissions Related to Final Energy Consumption in Ecuador: Scenarios of National and Worldwide Strategies

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